M I K E C A R P E R , H O U S I N G D E V E L O P M E N T C O R P O R A T I O N

R A Y D ’ A G O S T I N O , L A N C A S T E R H O U S I N G O P P O R T U N I T Y P A R T N E R S H I P

E M M A H A M M E , L A N C A S T E R C O U N T Y P L A N N I N G C O M M I S S I O N

L I N D A M A R S H A L L , C E N T R E C O U N T Y P L A N N I N G A N D C O M M U N I T Y D E V E L O P M E N T O F F I C E

Harvesting Housing Choices: Planting the Seeds of Affordability

through Partnerships

1 . W H A T I S A F F O R D A B L E H O U S I N G A N D W H Y D O W E N E E D I T ?

2 . W H A T A R E T H E R E G U L A T O R Y B A R R I E R S T O H O U S I N G A F F O R D A B I L I T Y A N D H O W D O W E

I D E N T I F Y T H E M ?

3 . H O W C A N W E A D D R E S S R E G U L A T O R Y B A R R I E R S T O H O U S I N G A F F O R D A B I L I T Y ?

Presentation Outline

M I K E C A R P E R A F F O R D A B L E H O U S I N G D E V E L O P E R & A D V O C A T E

Part 1: What is affordable housing and why do we need it?

Misconceptions: What does affordable housing look like?

Reality: Affordable Housing is often indistinguishable.

Technical DefinitionsHousing Cost Burden in 2009 (spending more than 30% of monthly income on housing costs):

ó Definition 1: A housing accommodation that costs a household no more than 30 percent of monthly household income

ó Definition 2: Housing that is affordable to low- and moderate-income residents

What is “affordable”?

ó Cost Burden in all Households:¡ 32.6 percent of homeowners with

a mortgage

¡ 48.1 percent of renters (paying rent)

ó Cost Burden in Households Earning Under $50,000 a Year:¡ 48.3 percent of homeowners

¡ 62.3 percent of renters

Data source: American Community Survey, 2009 Data Profiles

Who needs affordable housing?

Data source: PA State Bureau of Labor Statistics. May, 2009.

Occupation Mean AnnualWage

Mean Hourly Wage

AffordableMonthly Housing Cost

Fire Fighters $48,720 $23.43 $1,218

Dental Assistants $31,870 $15.32 $797

Paramedics $29,900 $14.38 $748

PreschoolTeachers

$25,610 $12.31 $640

Retail Salespersons

$25,030 $12.04 $626

Waiters and Waitresses

$19,310 $9.29 $483

ALLOCCUPATIONS

$42,040 $20.21 $1,051

Who needs affordable housing?vYoung People

v Our children and grandchildren

vElderly People

v Our parents and grandparents

vFamilies

v Our friends and relatives

vWorkers

v Nurses, waitresses, child care providers

vPublic Servants

v Teachers, policemen, fire fighters

v People with Disabilities

Why are affordable housing options important?v Economics!

v Can workers find housing?

v Can businesses find employees?

v Do workers need to commute long distances between work and home?

v Are builders able to build what consumers are able to buy?

E M M A H A M M E – T H E L A N C A S T E R C O U N T Y A P P R O A C H

L I N D A M A R S H A L L – T H E C E N T R E C O U N T Y A P P R O A C H

What are the regulatory barriers to housing affordability and how do we identify them?

Sources & Data

ó Census & American Community Survey¡ Housing Cost Burden

¡ Monthly Housing Costs

¡ Tenure (Renter vs. Owner)

¡ Housing starts

¡ Income

ó Bureau of Labor Statistics ¡ Income by Occupation

ó Local Association of Realtors¡ MLS Data on Home Sale Price

ó GIS Data¡ Income, poverty, cost burden, etc. mapping

ó Comprehensive Housing Affordability Strategy Data (CHAS)¡ ACS Data on Households and Housing

by HUD-Defined Income Limits

ó Comprehensive Plans¡ Housing Elements

¡ Existing & Future Land Use

¡ Growth Management Plans

¡ Population & Housing Unit Projections

ó Property Assessment Offices¡ Property Values & Sale Prices

¡ Building Permits

Determining Affordable Housing Needs

Housing Affordability Index: Lancaster County Municipalities, 2006In the majority of

municipalities, the price of an average home was more expensive than the average Lancaster County household could afford.

DATA

vMedian Sale Price

v Property Assessment Office, 2007-2008

vMedian Household Income

v American Community Survey, 2006

v Tax Millage

v Property Assessment Office, 2007-2008

vMortgage Interest Rate, Downpayment, & Property Insurance

v Claritas & National Averages

Local land use regulatory barriers are not the only barriers!

MANY FACTORS CONTRIBUTE TO HOUSING COST:

vLabor costs

vMaterial costs

vLand values

vAvailability of financing

vLocal economic factors:

v Unemployment

v Income

v Population growth

vConsumer preferences

v Federal & state priorities

Primary Resources

ó HUD’s “Creating a Taskforce on Regulatory Barriers to Housing Affordability”

ó PA DCED’s “Reducing Land Use Barriers to Affordable Housing”

ó Ordinance Inventory

ó Focus Groups

An Analysis of Regulatory Barriers to Housing Affordability in Lancaster County

DENSITY LOT & SETBACK REQUIREMENTS

ó May be more excessive for certain housing types, particularly multi-family

ó The more specific the lot requirements, the less flexibility

General Findings

ó Less land/unit means lower costs for roads, pipes, land, etc.

ó Lack of acceptance of higher densities

HOUSING TYPES & LAND AVAILABILITY

STREETS & INFRASTRUCTURE

ó Some housing types may be permitted only in limited areas or on land that is not readily developable

ó Accessory dwelling units

ó House size

ó Disparity between requirements and actual need

ó Land zoned for higher-density development may not be served by required infrastructure

General Findings

FEES & APPROVAL PROCESSES

FOCUS GROUP DISCUSSION: Developers & Municipal Staff

ó When charged on a per-unit basis fees may have a disproportionate impact on smaller, denser housing units

ó Special Exception/Conditional Use processes typically take more time and cost more money

ó SE/CU may be required for housing types other than single-family detached

ó Agreed:¡ Value of density

¡ Approval processes could be more efficient

¡ Public perception & reaction can make or break a project

ó Disagreed: ¡ Value of the conditional use process

¡ Treatment of different housing types

¡ Fairness of fees

General Findings

Example: ParkingCensus Data: Vehicles per Occupied Housing Unit

ó Each parking space adds to the overall cost of housing

ó Parking requirements may exceed actual demand

ó Requirements may be greater for multi-family than for single-family housing types

Data-Driven Regulations

q All Occupied Housing Units:

• 1.7 vehicles per unit

q Owner-Occupied Housing Units:

• 2.0 vehicles per unit

q Renter Occupied Housing Units:

• 1.2 vehicles per unit

A DDRESSING THE G A P BETWEEN INCOM E A ND HOUSING COSTS

CENTRE COUNTY

ó Made a request to the Centre County Board of Commissioners to commission a study of affordable housing needs

ó Objective was to define and quantify housing need

ó Completed the study, conducted by Diana T. Myers in late 2005.

CENTRE COUNTY

• Id enti f ied public pol ic y barriers f or 6 m unic ipal i t ies in Centre County. Eac h m unic ipal i ty h ad populat ions with h igh h ous ing c os ts c om pare to h ous eh old inc om e.

• (2) Boroughs

• (2) Higher residential growth townships

• (2) Townships in the outlying regions of the County

Centre County Affordable Housing Needs Assessment

A NA LYSIS LOOKED A T: • H o u s e h o l d d e m o g r a p h i c s , i n c l u d i n g h o u s i n g b u r d e n

• C o m p r e h e n s i v e p l a n s & e x i s t i n g l a n d u s e

• P e r m i t t e d h o u s i n g t y p e s i n e a c h r e s i d e n t i a l z o n i n g d i s t r i c t

• P e r m i t t e d , c o n d i t i o n a l o r s p e c i a l e x c e p t i o n u s e s

• C o d e s

• A d m i n i s t r a t i v e p r o c e s s

• F e e s ( z o n i n g , t a p p i n g f e e s , s c h o o l a n d m u n i c i p a l t a x e s

Centre County Affordable Housing Needs Assessment

CONSULTA NT RECOMM ENDED:

• County f ol low HUD’s ques tionnaire f or Rem ov al of Regulatory Barriers

• Conv ene s tak eh olders to dev elop s trategies

• Tes t regulat ions with one or two m unic ipal i t ies , prov ide inc entiv es and s h owc as e th e res ults

• Rec om m endations were pres ented to s tak eh olders at a public m eeting in Nov em ber 2 005.

Centre County Affordable Housing Needs Assessment

MUNICIPAL WORKSHIP on BARRIERS

March 2005

Sara Pratt, Author

L I N D A M A R S H A L L – T H E C E N T R E C O U N T Y A P P R O A C H

R A Y D ’ A G O S T I N O – T H E L A N C A S T E R C O U N T Y A P P R O A C H

How can we address regulatory barriers to housing

affordability?

2006 - Early 2007

Centre County Affordable Housing Coalition developed a primer for municipal officials and developers.

Needs Assessment Implementation

v Created a Centre County housing coordinator position

v Appointed a Housing Cabinet to advise the Centre County Board of Commissioners.

HOUSING CABINET: ó Central Pennsylvania Builders Association

ó Centre County Affordable Housing Coalition

ó Centre County Association of REALTORS

ó Centre County Housing Authority

ó Centre County Housing and Land Trust

ó Commercial lender

ó Habitat for Humanity of Greater Centre County

ó (2) Municipal regional representatives from residential growth areas

ó (3) Planning Directors (Centre County, Centre Region, and State College Borough)

Needs Assessment Implementation

v Centre County received a LUPTAP grant to develop model policies.

v Project Steering Committee: Centre County Housing Cabinet

• Developers have explored inclusionary housing opportunities

• (6) municipalities have adopted some form of inclusionary housing regulations

• (2) municipalities have regulations in draft form

PROGRESS in Centre County

Recommended PROCESS PARTNERS

• Dev elopers

• Builders ( Green bui lding expertis e)

• REA LTORS ®

• Lenders ( Com m erc ial and Res idential)

• Non-prof i t or agenc y-s ustaining h ous ing af f ord abi l i ty

• Planners

• Cons um ers

EXPERTS

SPEAKERS BUREAU Annual HOUSING SUMMIT

ADVOCATES

ó Presentations on affordable housing to: civic groups, faith-based organizations, governmental entities, others.

VIDEO

• Work with reporters

• Conduct radio/television interviews

• Meet with editorial board(s)

• Produce a video in order to put a face on housing needs

• Write articles for publication

MEDIA

BASIC FUNDAMENTALS

• Political will

• Commitment

• Creativity

• Persistence

• Patience

• Teamwork

• Fairness

ASSUMPTION: NO ONE SET OF POLICIES FITS ALL

1. Understand the concept

2. Identify the households to be served by policies

3. Establish a legislative purpose

4. Plan for inclusionary housing

5. Decide on an appropriate approach-voluntary or mandatory

6. Explore other inclusionary housing opportunities

7. Sustain housing affordability

8. Promote cost effective building standards

9. Develop an affordable housing plan

10. Consider model policies

Centre County’s Step by Step Process for MUNICIPAL OFFICIALS

LANCASTER COUNTY

Board Composition

ó Non-profit affordable housing developers

ó Businesses & employers

ó Social service agencies

ó Government representatives

ó Lenders

ó Realtors

Lancaster Housing Opportunity Partnership

ó Mission Statement: Helping people of low to moderate income access affordable homes throughout Lancaster County, by providing advocacy, education, financial assistance and facilitating the production of affordable housing.

Regulatory Barriers Task Force Members:

ó Affordable Housing Developers

ó Realtor

ó Planners

ó Social Service Providers

ó Elected Municipal Official

ó Municipal Staff

ó Housing & Redevelopment Authority Staff

ó Building Industry Association Representative

Partnerships

Dog & Pony Show

Putting the Report to Work

ó Presentations to municipal officials, housing organizations, and interested groups

ó Use of findings in Planning Commission reviews

ó Promotion as part of Planning Commission Smart Growth Toolbox

Outreach

Mission

Model Affordable Housing Land Use Regulation Task Force

ó To develop model land use regulatory techniques and policies that will:

¡ Reduce the cost of housing overall

¡ Lead to the creation of more affordable housing throughout Lancaster County

ó The model will be unique in that it will provide options

ó It will embrace smart growth principles.

Members

ó Land Use Attorney

ó Engineer/Landscape Architect

ó For-Profit Developer

ó Non-Profit Developer

ó Municipal Staff

ó Elected Municipal Official

ó Planner

ó Housing Advocate

ó Experts, as needed

Marketing

ó Getting the public on board

ó How public perception impacts municipal-level decision making

ó The housing, education, and economic development connection

ó Looking at the County as an economic region, where are: ¡ Jobs

¡ Transit

¡ Housing Needs

ó Drill down needs to the municipal level to aide local decision making and target funding opportunities

Next Steps in Lancaster County

Market Study

Q U E S T I O N S ? ?

The End

Contact Information

ó Ray D’Agostino¡ LHOP

www.lhop.org

717.291.9945 rdagostino@lhop.org

ó Emma Hamme¡ LCPC

www.co.lancaster.pa.us/planning

717.299.8333

ehamme@co.lancaster.pa.us

ó Mike Carper¡ HDC

www.hdcweb.com

717.509.8036

mcarper@hdcweb.com

ó Linda Marshall¡ CCPCDO

www.co.centre.pa.us/151

814.355.6791

lmarshall@co.centre.pa.us

Photo Credits

ó BlackPast.org: Remembered and Reclaimed. “Cabrini Green Housing Project, Chicago (1942-2009)” www.blackpast.org.

ó Find Target Reference. “New York City Housing Authority.” http://reference.findtarget.com.

ó HDC Speakers Bureau Presentation (provided via email)

ó Lancaster County Planning Commission

¡ Marie Quigg/Eli Yearick.

ó Community Basics, Inc. www.communitybasics.com/communities.

ó Advantage Career Institute. www.advantagecareerinstitute.comó http://plone.scottsdalecc.edu/career/1college-graduates.jpgó Community Foundation for the National Capital Region -

http://www.cfncr.org/site/c.ihLSJ5PLKuG/b.4475715/k.269D/What_We_Do.htm

ó “Dog and Pony Show.” http://www.entityspaces.net/images/dog_and_pony.jpg

Sources